General Electric Co. (GE) has agreed to Dresser Inc., a maker of energy
infrastructure products, for $3 billion from investors led by private-equity
firms Riverstone Holdings LLC and the Carlyle Group LP.
The deal is the conglomerate's latest move to expand its energy business. In
September, it announced a joint venture with a unit of Harbin Power Equipment
Co. (1133.HK) to manufacture wind turbines to customers in
China
. Its
energy division is studying potential partnerships to give it a greater range
in the smart grid business.
Dresser's offerings include technology for gas engines and control products for
gas and fuel distribution. The target, active in more than 150 countries,
earned $318 million last year on $2 billion in revenue.
Dresser was bought by the investor group, which also included First Reserve Corp.
and defunct investment bank Lehman Brothers Holdings, for an undisclosed price.
It had been a Halliburton Co. (HAL) unit until 2001 and explored selling itself
in 2006 after withdrawing plans for an initial public offering, citing the need
to correct accounting issues.
Meanwhile, the sale by the Carlyle-led group comes as private-equity companies
have been selling numerous holdings as they look to generate cash from them. That
has occurred both through outright divestitures as well as selling a stake in
companies through initial public offerings.
GE shares
were up 3 cents at $16.54 in recent trading.